This GSEB Class 12 Organization of Commerce and Management Notes Chapter 2 Principles of Management covers all the important topics and concepts as mentioned in the chapter.
Principles of Management Class 12 GSEB Notes
Meaning of Principles of Management:
In a business unit some rules, principles might be framed in relation to human behavior so, the achievement of goal becomes easy. These principles are called the principles of management.
Concept of Principles of Management:
The principles of management are not rigid as pure science but flexible. It has direct relation with human behavior. Hence, there is room for adding new principles after making corrections periodically. Thus, the changes take place in the principles of management to cope up with the new changes. It is wide and perfect guideline for decision making and its implementation.
Nature of Principles of Management:
The matters relating to Nature of Principles of management can be described as under :
- Principles of management are comprehensive and universal.
- The principles of management are not rigid conclusion but are flexible.
- The principles of management are just like a guideline.
- The principles of management have major impact over human behavior.
- One element to apply principles of management is contingency.
Importance of Principles of Management:
Principles of management provides a vision to managerial behavior. Managers use these principles for achievement of objectives/goals. Its importance can be described as under:
- Managerial efficiency increases because of principles of management.
- Human and physical resources can be utilized at its maximum level because of management principles.
- Proper decisions can be taken without partiality and bias, by business unit, with the help of principles of management.
- Management principles are necessary guide to meet business environment under changing circumstances.
- With the implementation of principles of management, business unit can easily achieve the objective of social responsibility.
- The training, education and development of employees become possible with the use of principles of management.
Thoughts of Management:
The various thoughts of management have been developed based on various researches, studies and results in the field of management. In these thoughts many management gurus have represented different principle by separate opinions. Hence, so many branches and sub-branches have developed. It is called thoughts and approaches of management.
Thoughts of Classical Theory:
The thoughts of management presented till the end of 19th Century are known as thoughts of classical theory. The main promoters of thoughts of classical theory are Frederick Taylor, Max Weber, Gilbreath, Henry Gantt and Henry Fayol. In the thoughts of classical theory, contribution of Frederick Taylor and Henry Fayol is important. Frederick Taylor has presented Principles of Scientific Management. Henry Fayol contributed significantly by presenting General Principles of Management.
Thoughts of Neo-classical Theory:
The limitations of classical theory of management were removed, changes were made into it and then management experts established new approaches. It is called neo-classical theory of management. Theory of Austrilian Industrial psychologist Elton Mayo’s Theory of Howthorne; gave birth to new behaviour oriented thought. Hence, he was called promoter of Neo-classical Theory. This thought about management give emphasis to behaviour oriented approach and group behaviour for management. In these thoughts; Elton Mayo, Herzberg, Rensis Likert, Chris Argyris, Mcgregor and Maslow have contributed mainly.
Thoughts of Behaviour Related:
This thought gives stress on increasing job satisfaction and efficiency of employees by using psychological observations. Concepts like inter human relations, motivation, leadership, process of information communication, disposal of industrial disputes; are related in this school of thought.
Thoughts of Modem Management:
After 1960 as management did not remain the field for business unit special professional class of managers emerged. In this thoughts together with management use of psychology, social studies, statistics, mathematics and computer information technology is advocated. In this thoughts contribution of management gurus like; Koontz, O’Donnell, Dr George R. Terry, Peter F. Drucker, William Ouchi and C. K. Prahalad; is important.
Frederick Taylor’s Principle of Scientific Management:
E W. Taylor presented principle of scientific management; very first. Hence, he is known as father of scientific management. Instead of use – of traditional method rule of thumb, Taylor presented new concept with scientific approach, which is known as scientific management.
Meaning of Scientific Management:
Scientific management is mental revolution on the part of particular unit of employees in factory. It is totally a mental revolution towards their tasks, duties, colleagues and owners.
Definition of Scientific Management:
“Knowing exactly what you want your men to do, and then see to it that they do it in the best and the cheapest way; is scientific management.”
Shri Frederick Taylor presented concept of scientific management as a challenge to traditional management as revolutionary thought. Below stated matters are considered into it:
- Assignment of work to each worker as per his mental and physical ability.
- Each worker should be given instruction to perform maximum work as per his category.
- 30 % to 100% more wages, to rapid and efficient worker.
Principles of Scientific Management :
Frederick Taylor provided principles of scientific management with a purpose that workers and owners may work with harmony. They are as under :
- To do work new scientific methods should be adopted.
- Experts may do work of planning and workers may implement the same.
- Job analysis is the best tool to do work rapidly with lower cost.
- Standardization of equipments, resources, time, situation of work, etc. matters; is necessary.
- Workers’ selection should be done appropriately and scientifically. Training should be used periodically for increasing efficiency of workers.
- Skilled workers should be offered financial and other kind of motivation.
- During implementation of scientific emphasize should be on low cost of production oyer and above scientific and technical base.
- There should be mental revolution between owners and workers for the achievement of goals.
Techniques of Principle of Scientific Management:
- Time Study: Time study means scientific study being done for time required to complete certain part of work task.
- Motion Study: Motion study means method of removing wastage of resources due to unnecessary and unproductive movement.
- Differential Wage Rate Method: Differential wage rate method means wage given through wage related motivation based on time of work to workers.
Principles of Management by Henry Fayol:
Henry Fayol divided administrative principles of Industrial Unit in six parts for ease and clarification :
- Technical activities,
- Commercial activities,
- Financial activities,
- Safety activities,
- Accounting activities and
- Management activity.
Henry Fayol presented fourteen important principles of management based on his experience and knowledge; which have proved to be very useful in the field of management. The principles are as under:
- Principle of Division of Work
- Principle of Authority and Responsibility
- Principle of Discipline
- Principle of Unity of Command
- Principle of Unity of Direction,
- Sub-ordination of Individual interest to General interest
- Principle of Proper Remuneration to Personnel
- Principle of Centralization,
- Principle of Scalar Chain of Power,
- Principle of Order
- Principle of Equality,
- Principle of Stability of Personnel Tenure,
- Principle of Initiative
- ‘Espirit de Corps’ (Feeling of oneness).
Contribution of Peter F. Drucker in the Field of Management: Peter F. Drucker give special importance to Human Asset in business unit. In his main contribution ‘Management by Objective’ and ‘Principle of Self-regulation’ are main. He contributed mainly for Human Resource Management, Market Management and Stress Management. Hence, he is called Father of Modern Management.